• Downside at top-line is largely due to strong degrowth in revenue of mid teen growth in revenue of Lump-sum Turnkey Projects (LTP). The segment revenue of Consultancy & Engineering Projects (C&EP) registered a marginal 1% to Rs 237.85 crore. The segment revenue of LTP was down by 20% to Rs 130.52 crore. Contribution of C&EP to top-line increased to 65% from 59% in corresponding previous period. But that of LTP was down to 35% from 41% in corresponding previous period.
  
• EBIT for the quarter was down by 9% to Rs 57.86 crore and the downside is largely due to C&EP division. Despite lower sales, the segment profit of LTP jumped up to Rs 18.17 crore from mere Rs 0.50 crore in the corresponding previous period largely due to 1360 bps expansion in segment margin to 13.9%. However the segment profit of C&EP was down by 37% to Rs 39.68 crore with its segment margin crash by 1010 bps to 16.7%.
  
• Contraction in OPM was largely due to rise in all cost heads barring sub contract payment. Staff cost as proportion to sales was higher by 300 bps to 41%. Similarly the construction material cost was up by 60 bps to 20.5% and the other expenses were up by 190 bps to 11.7%. But the sub contract cost was down by sharp 460 bps to 16.3%.
  
• Other income was up by 20% to Rs 61.60 crore, the interest cost was nil and the depreciation was down by 2% to Rs 5.26 crore. Thus the PBT was up by marginal 3% to Rs 95.03 crore.
  
• As taxation stand higher by 3% (to Rs 33.25 crore) in absolute term, the tax rate was marginally higher at 35.0% compared to 34.9% in corresponding previous period. Thus the growth at net profit was 3% to Rs 61.67 crore.
  
• Prior period tax was a write back of Rs 0.31 crore compared to nil in the corresponding previous period. Thus the net profit was up by 4% to Rs 62.09 crore.

Nine month performance

Standalone sales were lower by 1% to Rs 1209.42 crore. But with 20 bps expansion in OPM, the operating profit was flat at Rs 120.61 crore. After accounting for lower other income and higher depreciation cost, the fall at PBT was 2% to Rs 292.30 crore. Taxation was higher by 5% to Rs 104.64 crore. Thus the PAT was lower by 6% to Rs 187.66 crore. Prior period tax was a write back of Rs 0.73 crore compared to nil in the corresponding previous period. Thus the net profit was down by 5% to Rs 188.39 crore.  

LTP registered a segment profit of Rs 31.59 crore (against a loss of Rs 7.53 crore in corresponding previous period) on a sale of Rs 490.47 crore, a fall of 8%. The segment profit of C&EP was lower by 19% (to Rs 148.40 crore) on a sale of Rs 718.96 crore, which was up by 4%.  

The stock hovers around Rs 154.25.